# Question

The following data are operating income X and monthly stock close Y for Clorox, Inc. Graph the data. Then regress log Y on X.

X ($ millions): 240, 250, 260, 270, 280, 300, 310, 320, 330, 340, 350, 360, 370, 400, 410, 420, 430, 450

Y ($s): 45, 42, 44, 46, 47, 50, 48, 60, 61, 59, 67, 75, 74, 85, 95, 110, 125, 130

Predict Y for X = 305.

X ($ millions): 240, 250, 260, 270, 280, 300, 310, 320, 330, 340, 350, 360, 370, 400, 410, 420, 430, 450

Y ($s): 45, 42, 44, 46, 47, 50, 48, 60, 61, 59, 67, 75, 74, 85, 95, 110, 125, 130

Predict Y for X = 305.

## Answer to relevant Questions

One of several simple linear regressions run to assess firms’ stock performance based on the Capital Asset Pricing Model (CAPM) for firms with high ratios of cash flow to stock price was the following. Firm excess return = ...1. Carry out the regression and find the β for the stock. What is the regression equation? 2. Does the value of the slope indicate that the stock has above-average risk? (For the purposes of this case assume that the risk ...Discuss the relative merits and limitations of the four variable selection methods described in this section. Prove equation. A regression analysis was carried out to assess sale prices of land in Uganda based on many variables that describe the owner of the land: age, educational level, number of males in the household, and more.7 Suppose that ...Post your question

0